The current credit crunch AKA Subprime mortgage crisis is a sudden reduction in the general availability of loans (or credit), and the sudden increase in the cost of obtaining loans from banks. This lead to the Great Recession.
This lead to the Late 2000s and never ending recession.
The credit crunch and recession happened partly because irresponsible bankers loaned too much money, overestimated value, overestimated the ability of borrowers to repay, lied about risk in valuing their product, and sold their improperly valued product on to others who did the same. When investors began to realize the product's actual value things went pear shaped. Of course most of those irresponsible characters were Conservatives, which because of conflation Conservative and conservative accounting practices made the lies more effective and damaging.
Another reason for the recession was high prices for oil and food which had other causes. Whatever the causes many workers are finding that their jobs are on the line or have vanished. Honest people who worked to build up a business are struggling to keep their business afloat or are going bankrupt. George W. Bush didn't do enough early on and that worsened the crisis The United States is affected and experts can't agree whether to call it a downturn or a recession there.  George W.Bush and the rest of his administration didn’t see that the crisis was coming and didn’t take action in time.  Some banks became insolvent because they had lent more than they had. Other banks needed government support to avoid insolvency. The United Kingdom is hard hit and it is estimated that the UK economy will shrink by 4%.  Asian Stock Markets have fallen. 
The greedy bankers
A few of them are in jail. Most got away because they could cover their tracks or had good lawyers, or just couldn't be prosecuted because of Conservative's attack on regulation. Most of them, even those in jail have hidden money away in Swiss bank accounts and the like. They’ll be living it up while more honest people lose their jobs and lose their businesses.
"Such regulations may, no doubt, be considered as in some respects a violation of natural liberty. But those exertions of the natural liberty of a few individuals, which might endanger the security of the whole society, are, and ought to be, restrained by the laws of all governments, of the most free as well as of the most despotical. The obligation of building party walls, in order to prevent the communication of fire, is a violation of natural liberty exactly of the same kind with the regulations of the banking trade which are here proposed."
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